The 1997 crime drama show “The Sopranos” introduced us to Tony Soprano (played by James Gandolfini), an Italian American mobster who became the leader of a criminal organization while struggling with his own personal and family affairs.
Idolized by many, his unique style has even paved the way for human resources and management books.
This time, however, we’re looking into how Tony Soprano’s way of doing things can help you in the investment world.
Here are some of his most iconic quotes, and how they apply to the everyday investor.
“It’s good to be in something from the ground floor. I came too late for that and I know. But lately, I’m getting the feeling that I came in at the end. The best is over.”
Tony contemplated on how the best times have gone by and how he might have missed them.
We have all heard “Buy low, sell high” before, and we have all fought FOMO (fear of missing out ) too.
Sometimes getting in early is key to an investment, other strategies will only try to capitalize on short price movements even if they do miss out on a big trend.
The key idea here is that you have to know your entry and exit points and be rigorous so that you won’t find yourself thinking that “the best is over”.
You will not want to exit your positions early and miss out on extra profits, the same way you most certainly won’t like to hold on to a losing investment for more than you should.
“My father was in it. My uncle was in it. Maybe I was too lazy to think for myself. To consider myself... A rebel. Maybe being a rebel in my family would have been selling patio furniture on route 22.”
The Sopranos was a brilliant show in terms of plot and how it humanized even the worst characters.
Tony was the mob boss but in his therapy sessions, showed that he was self-aware, something which earned viewer’s respect. He actively decided to follow his family’s footsteps while fully knowing the extent of that decision.
Investors often blindly follow other investors, their gurus, their relatives, or friends’ “hot tip”, or even some TV show hosts.
The key issues are:
·Even if it sounds like a “sure thing”, don’t be lazy, don’t take anything at face value, think for yourself and always do your own due diligence.
·Sometimes you will find that the logical investment will be a contrarian one. And if your research is telling you that you have to swim against the current, then by all means do so.
“Log off. That ‘cookies’ sh-t makes me nervous.”
Tony didn’t like the feeling of being tracked, so he completely avoided it.
There are bad days in the market and believe us when we say: the feeling of looking at a sea of red is bad.
So, if you have a long-term strategy, sometimes it’s best not to glue yourself to the screen daily and wonder why your investments are not going up as they should.
“What happened to Gary Cooper? The strong, silent type. That was an American. He wasn’t in touch with his feelings. He just did what he had to do.”
Tony was a big fan of the western star Gary Cooper.
In the show, however, Tony was on the opposite side of the spectrum as his explosive temper would put make him the polar opposite of the stoic western character.
When investing, you too will discover that your own feelings (like greed and fear) will try to mess with your strategy.
Reading up on trading psychology and curbing your own biases will greatly improve your trading performance.
“‘Remember when’ is the lowest form of conversation.”
You win some, you lose some, but the important thing is to learn from each trade and avoid getting all caught up in the past.
Keep that old saying in mind: past performance is no guarantee of future results.
“What use is an unloaded gun?”
Always be ready.
Tony Soprano dealt with violent criminals and opposite gangs.
He studied their every move and learned their way of dealing with things.
While his actions empowered him, they would also let him avoid traps or pitfalls.
He would never walk around unprepared and so shouldn’t you.
If you are dealing with investments, you should research as much as possible on both the companies you invest in, as well as the macroeconomic outlook and the very market’s conditions.
“They say every day’s a gift, but why does it have to be a pair of socks?”
There are going to be bad days in the market but don’t let a bad run let you down.
Tony focused too much on the bad days to the point of him calling himself “King Midas in revers”, and that led to poor judgement at times.
As such, don’t focus on losses, learn from them instead. Another useful tip is keeping a trading journal and recording what you can, even the mood you were in when entering your positions.
“All due respect, you got no f—in’ idea what it’s like to be Number One. Every decision you make affects every facet of every other f—in’ thing. It’s too much to deal with almost. And in the end, you’re completely alone with it all.”
Tony carried the burden of responsibility.
This quote highlights it and should serve as a reminder that you are the sole responsible for your investment decisions too so remember to act accordingly.
